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V1641-22 8 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Lease income paid in advance does not qualify for the 30% reduction if not attributed to a single period

A query was raised regarding the taxation of a commercial premises lease where the total amount for the first four years is collected in a single upfront payment. The DGT has determined that these earnings constitute income from real estate capital and are ineligible for the reduction for irregular income.

The question raised

Taxation of the described transaction, lease of a commercial premises, under Personal Income Tax. Temporal imputation of returns. Application of the reduction provided for in Article 23.3 of the Tax Law.

The DGT's ruling

Income is considered returns from real estate capital and must be imputed to the tax period in which it becomes due. Since the entirety of the returns is not imputed in a single tax period, it is not possible to apply the 30% reduction provided for returns with a generation period exceeding two years or those that are notably irregular. The returns shall form part of the general income for the calculation of the tax.

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